wells fargo 3q earnings release - final

8/3/2019 Wells Fargo 3Q Earnings Release - FINAL

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Media InvestorsMary Eshet Jim Rowe704-383-7777 415-396-8216

Monday, October 17, 2011

WELLS FARGO REPORTS RECORD QUARTERLY NET INCOME OF $4.1 BILLIONIncreased Loans and Deposits, Lower Expenses from Second Quarter

Solid financial results:o Record Wells Fargo net income of $4.1 billion, up 21 percent from prior year, up 3 percent from prior

quarter

o Record diluted earnings per common share of $0.72, up 20 percent from prior year, up 3 percentfrom prior quarter

o Pre-tax pre-provision profit (PTPP)1 of $8.0 billion, up slightly from prior quartero Return on average assets of 1.26 percento Revenue of $19.6 billion, compared with $20.4 billion in prior quartero Noninterest expense down $798 million from prior quarter

Strong loan and deposit growth:o Total loans of $760.1 billion at September 30, 2011, up $8.2 billion from June 30, 2011; core loan

portfolios up $13.4 billion from June 30, 20112

o Total average core checking and savings deposits up $33.8 billion from prior quarter Improved capital position:

o Tier 1 common equity increased $3.1 billion to $91.9 billion, with Tier 1 common equity ratio of9.35 percent under Basel I at September 30, 2011. Under current Basel III capital proposals,

Tier 1 common equity ratio estimated at 7.41 percent3

o Called $5.8 billion of trust preferred securities with an average coupon of 8.45 percento Purchased 22 million shares of common stock in third quarter 2011 and an additional estimated

6 million shares through a forward repurchase transaction that will settle in fourth quarter 2011

Improved credit quality:o Net loan charge-offs declined to $2.6 billion, down $227 million from prior quarter; down

$1.5 billion from prior year

1 See footnote (2) on page 16 for more information on pre-tax pre-provision profit.2See table on page 5 for more information on core and non-strategic/liquidating loan portfolios.3See tables on page 37 for more information on Tier 1 common equity.


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o Nonperforming assets declined to $26.8 billion, down $1.1 billion from prior quarter; down$7.6 billion from prior year

o Reserve release1of $800 million (pre-tax) reflected improved portfolio performance

Wachovia integration nearing successful completiono Retail bank store conversions finished with the North Carolina conversion the weekend of

October 15-16, 2011

o Over 38 million accounts converted, including mortgage, deposit, trust, brokerage and credit cardo On track for completion in first quarter 2012

Committed to helping homeowners remain in their homeso As of August 31, 2011, 716,945 active trial or completed loan modifications had been initiated since

the beginning of 2009; of this total, 85 percent were through Wells Fargos own modification

programs and the remainder were through the federal governments Home Affordable ModificationProgram (HAMP)

o Since September 2009, Wells Fargo hosted 40 Home Preservation Workshops where specialists metindividually with more than 26,000 customers

Selected Financial Information

Sept. 30, June 30, Sept. 30,2011 2011 2010

Earnings

Diluted earnings per common share 0.72$ 0.70 0.60Wells Fargo net income (in billions) 4.06 3.95 3.34

Asset Quality

Net charge-offs as a % of avg. total loans (annualized) 1.37 % 1.52 2.14

Allowance as a % of total loans 2.68 2.83 3.23

Allowance as a % of annualized net charge-offs 197 187 150

Other

Revenue (in billions) 19.63$ 20.39 20.87

Average loans (in billions) 754.5 751.3 759.5

Average core deposits (in billions) 836.8 807.5 772.0

Net interest margin 3.84 % 4.01 4.25

Quarter ended

SAN FRANCISCO Wells Fargo & Company (NYSE: WFC) reported record net income of $4.1 billion, or

$0.72 per diluted common share, for third quarter 2011, up from $3.3 billion, or $0.60 per share, for third

quarter 2010, and up from $3.9 billion, or $0.70 per share, for second quarter 2011.

The economic recovery has been more sluggish and uneven than anyone anticipated, said Chairman and

CEO John Stumpf. We cant change the economic environment, yet we have worked hard to control the

1Reserve release represents the amount by which net charge-offs exceed the provision for credit losses.


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variables we can making our products and services more relevant to individuals and businesses, focusing

on the customer, making as many loans as possible and growing new relationships as well as fostering

longtime ones. We see the results of this focus in growing cross-sell, deposits, and loans. Customers need a

trusted financial partner, especially in challenging economic times. Wells Fargo has proven to be that partner

over and over again.

We are nearing the completion of our three-year Wachovia integration process. To date, Regional Banking

has now completed its store conversions and our retail stores are Wells Fargo coast-to-coast on a single

platform. Thank you to every single team member who has been involved in this remarkable effort.

This was a strong quarter for Wells Fargo, with solid growth in loans, deposits, investment securities and

capital, along with improved credit quality and lower expenses, said Chief Financial Officer Tim Sloan.

While our industry continued to face challenges due to economic conditions during this quarter, Wells

Fargos diversified model was again able to produce solid results for our shareholders.

Revenue

Revenue was $19.6 billion, compared with $20.4 billion in second quarter 2011. While certain market-

sensitive revenues were down from the second quarter, many of our businesses grew revenue, said Sloan.

Businesses generating linked-quarter revenue growth included asset management, asset-backed finance, auto

dealer services, capital finance, commercial banking, commercial mortgage servicing, commercial real estate,

corporate trust, credit card, equipment finance, equity funds group, global remittance, government and

institutional banking, international, mortgage, personal credit management, real estate capital markets,

retail sales finance, and student lending.

Net Interest Income

Net interest income was $10.5 billion, down from $10.7 billion in second quarter 2011. The continued

negative impact of higher-yielding loan and security runoff was partially offset by growth in commercial

loans, investment portfolio purchases, lower deposit and debt costs, and the benefit of one additional

business day in the quarter. Net interest income was also lower due to items that vary from quarter to quarter

such as loan prepayments and resolutions. Approximately 12 basis points of the 17 basis point decline in the

net interest margin slightly over 70 percent from 4.01 percent in second quarter to 3.84 percent in third

quarter was due to the exceptional deposit growth of $42 billion from June 30, 2011. These deposits wereinvested in short-term assets which had the effect of diluting the net interest margin.


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Noninterest Income

Noninterest income was $9.1 billion, compared with $9.7 billion in second quarter 2011. The $622 million

decline was driven by an $808 million decline in trading, debt and equity gains primarily related to reduced

equity gains compared with the prior quarters elevated levels, losses on deferred compensation plan

investments and market volatility. Commissions and all other fees declined 8 percent linked quarter due to

lower bond and equity originations, lower commissions, and lower asset-based fees associated with the

14 percent decline in the S&P 500 Index in the quarter. Insurance fees were down 26 percent linked quarter

almost entirely due to seasonality in crop insurance. Deposit service charges increased 3 percent linked

quarter primarily due to account and volume growth. Operating lease income was up on early termination

gains.

Mortgage banking noninterest income was $1.8 billion, up $214 million from second quarter 2011, on

$89 billion of originations compared with $64 billion of originations in second quarter. Mortgage banking

noninterest income in third quarter included a $390 million provision for mortgage loan repurchase losses

compared with $242 million in second quarter (included in net gains from mortgage loan origination/sales

activities). Net mortgage servicing rights (MSRs) results were a $607 million gain compared with a

$374 million gain in second quarter 2011. The ratio of MSRs to related loans serviced for others was 74 basis

points and the average note rate on the servicing portfolio was 5.21 percent. The unclosed pipeline at

September 30, 2011, was $84 billion compared with $51 billion at June 30, 2011.

The Company had net unrealized securities gains of $6.8 billion at September 30, 2011, down $2.4 billion

from second quarter 2011, primarily due to widening credit spreads. Period-end securities available for sale

balances were up $20.9 billion, reflecting increased investment activity.

Noninterest Expense

Noninterest expense was $11.7 billion, down $798 million from second quarter 2011 and down $576 million

from a year ago. The linked-quarter decline in noninterest expense was driven by lower total personnel

expense ($6.6 billion, down from $6.9 billion in second quarter 2011), lower merger costs ($376 million,

down from $484 million prior quarter) and lower operating losses ($198 million, down from $428 million

prior quarter). Included in personnel expense was a $384 million linked-quarter decline in employee benefits

due primarily to lower deferred compensation expense which was offset entirely in trading gains and losses.

We are pleased with our positive operating leverage and the progress we've made on our Compass expensemanagement initiative. Future quarterly expenses are expected to fluctuate as our Compass initiative

proceeds toward our stated target of $11 billion of noninterest expense for fourth quarter 2012, said Sloan.

The Companys efficiency ratio improved to 59.5 percent from 61.2 percent in second quarter.


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Loans

Total loans were $760.1 billion at September 30, 2011, up $8.2 billion from $751.9 billion at June 30, 2011.

Increased balances in many loan portfolios more than offset the continued planned reduction in the non-

strategic/liquidating portfolios, which declined $5.2 billion in the quarter. Many portfolios had linked-

quarter growth in average loan balances, including asset-backed finance, auto (excluding liquidating), capital

finance, commercial banking, commercial real estate, corporate banking, credit card, government and

institutional banking, international, mortgage, private student lending and retail sales finance.

(in millions) Core Liquidating (1) Total Core Liquidating (1) Total

Commercial 333,513$ 6,321 339,834 323,673 7,016 330,689

Consumer 310,084 110,188 420,272 306,495 114,737 421,232

Total loans 643,597$ 116,509 760,106 630,168 121,753 751,921

Change from prior quarter: 13,429$ (5,244) 8,185 5,834 (5,068) 766

(1)

September 30, 2011 June 30, 2011

See table on page 33 for additional information on non-strategic/liquidating loan portfolios. Management believes that the above

information provides useful disclosure regarding the Companys ongoing loan portfolios.

Deposits

Average core deposits were $836.8 billion, up 8 percent from a year ago and up 14 percent (annualized) from

second quarter 2011. Consumer checking accounts grew a net 5.6 percent from September 30, 2010. Average

core checking and savings deposits were $769.2 billion, up 12 percent from a year ago and up 18 percent

(annualized) from second quarter 2011. Average mortgage escrow deposits were $28.3 billion compared with

$30.2 billion a year ago and $23.9 billion in second quarter 2011. Average core checking and savings deposits

were 92 percent of average core deposits, up from 89 percent a year ago. The average deposit cost for third

quarter 2011 was 25 basis points compared with 28 basis points in second quarter 2011. Average core

deposits were 111 percent of average loans, up from 107 percent in second quarter 2011.

Capital

Capital increased with Tier 1 common equity reaching $91.9 billion under Basel I, or 9.35 percent of risk-

weighted assets. Under current Basel III proposals, the Tier 1 common equity ratio was an estimated

7.41 percent. The Company called for redemption $5.8 billion of trust preferred securities in the quarter,

repurchased 22 million shares of its common stock and an additional estimated 6 million shares through a

forward repurchase transaction that will settle in fourth quarter 2011, and paid a quarterly common stock

dividend of $0.12 per share.


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Sept. 30, June 30, Sept. 30,(as a percent of total risk-weighted assets) 2011 2011 2010

Ratios under Basel I (1):

Tier 1 common equity (2) 9.35 % 9.15 8.01

Tier 1 capital 11.28 11.69 10.90

Tier 1 leverage 8.97 9.43 9.01

(1)

(2)

September 30, 2011, ratios are preliminary.

See table on page 37 for more information on Tier 1 common equity.

Credit Quality

Credit quality continued to improve in the third quarter, our seventh consecutive quarter of declining loan

losses and the fourth consecutive quarter of lower nonperforming assets, said Chief Risk Officer Mike

Loughlin. Third quarter net charge-offs were $2.6 billion, or 1.37 percent (annualized) of average loans, down

$227 million from second quarter net charge-offs of $2.8 billion (1.52 percent). The decline in net charge-offs

was driven by lower losses in nearly all loan categories and delinquency trends were stable. Reflecting the

improved overall portfolio performance, the provision for credit losses was $800 million less than net

charge-offs, compared with $1.0 billion in prior quarter. While we continued to see positive trends in credit

performance, the rate of improvement moderated in some portfolios in the quarter, as one would expect at

this point in the credit cycle, said Loughlin. Absent significant deterioration in the economy, we continue to

expect future reserve releases.

Net Loan Charge-Offs

Quarter ended

Sept. 30, 2011 June 30, 2011 Mar. 31, 2011

As a As a As aNet loan % of Net loan % of Net loan % of

charge- charge- charge-

($ in millions) offs loans (1) offs loans (1) offs loans (1)

Commercial:

Commercial and industrial 261$ 0.65 % 254$ 0.66 % 354$ 0.96 %

Real estate mortgage 96 0.37 128 0.50 152 0.62

Real estate construction 55 1.06 72 1.32 83 1.38

Lease financing 3 0.11 1 0.01 6 0.18

Foreign 8 0.08 47 0.52 28 0.34

Total commercial 423 0.50 502 0.62 623 0.79

Consumer:

Real estate 1-4 family first mortgage 821 1.46 909 1.62 904 1.60

Real estate 1-4 family junior lien mortgage 842 3.75 909 3.97 994 4.25

Credit card 266 4.90 294 5.63 382 7.21

Other revolving credit and installment 259 1.19 224 1.03 307 1.42

Total consumer 2,188 2.06 2,336 2.21 2,587 2.42

Total 2,611$ 1.37 % 2,838$ 1.52 % 3,210$ 1.73 %

(1) Quarterly net charge-offs as a percentage of average loans are annualized. See explanation on page 29 of the accounting for purchased

credit-impaired (PCI) loans from Wachovia and the impact on selected financial ratios.

average average average


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Nonperforming Assets

Nonperforming assets ended the quarter at $26.8 billion, down 4 percent from $27.9 billion in the second

quarter. Nonaccrual loans declined to $21.9 billion from $23.0 billion in the second quarter, with reductions

across all major loan portfolios, resulting from reduced inflow of new nonaccrual loans and stable outflows to

foreclosed assets. Foreclosed assets increased slightly to $4.9 billion.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)

As a As a As a

% of % of % of

Total total Total total Total total

($ in millions) balances loans balances loans balances loans

Commercial:

Commercial and industrial 2,128$ 1.29 % 2,393$ 1.52 % 2,653$ 1.76 %

Real estate mortgage 4,429 4.24 4,691 4.62 5,239 5.18

Real estate construction 1,915 9.71 2,043 9.56 2,239 9.79

Lease financing 71 0.55 79 0.61 95 0.73

Foreign 68 0.18 59 0.16 86 0.24

Total commercial 8,611 2.53 9,265 2.80 10,312 3.19

Consumer:

Real estate 1-4 family first mortgage 11,024 4.93 11,427 5.13 12,143 5.36

Real estate 1-4 family junior lien mortgage 2,035 2.31 2,098 2.33 2,235 2.40

Other revolving credit and installment 230 0.27 255 0.29 275 0.31

Total consumer 13,289 3.16 13,780 3.27 14,653 3.42

Total nonaccrual loans 21,900 2.88 23,045 3.06 24,965 3.32

Foreclosed assets:GNMA 1,336 1,320 1,457Non GNMA 3,608 3,541 4,055

Total foreclosed assets 4,944 4,861 5,512

Total nonperforming assets $ 26,844 3.53 % $ 27,906 3.71 % $ 30,477 4.06 %

Change from prior quarter:

Total nonaccrual loans $ (1,145) $ (1,920) $ (1,277)

Total nonperforming assets (1,062) (2,571) (1,774)

Sept. 30, 2011 June 30, 2011 Mar. 31, 2011

Loans 90 Days or More Past Due and Still Accruing

Loans 90 days or more past due and still accruing (excluding government insured/ guaranteed) totaled

$1.9 billion at September 30, 2011, compared with $1.8 billion at June 30, 2011. Loans 90 days or more past

due and still accruing whose repayments are insured by the Federal Housing Administration or

predominantly guaranteed by the Department of Veterans Affairs for mortgages and the U.S. Department of

Education for student loans under the Federal Family Education Loan Program were $17.7 billion at

September 30, 2011, compared with $15.5 billion at June 30, 2011.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $20.4 billion at

September 30, 2011, down from $21.3 billion at June 30, 2011. The allowance coverage to total loans was

2.68 percent compared with 2.83 percent in the prior quarter. The allowance covered 1.97 times annualized

third quarter net charge-offs compared with 1.87 times in the prior quarter. The allowance coverage to

nonaccrual loans was 93 percent at September 30, 2011, compared with 92 percent at June 30, 2011. We


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believe the allowance was adequate for losses inherent in the loan portfolio at September 30, 2011, said

Loughlin.

Additional detail on credit quality is included in the quarterly supplement, available on the Investor

Relations page atwww.wellsfargo.com/invest_relations/investor_relations/

Business Segment PerformanceWells Fargo defines its operating segments by product type and customer segment. Segment net income for

each of the three business segments was:

Sept. 30, June 30, Sept. 30,

(in millions) 2011 2011 2010

Community Banking 2,315$ 2,087 1,935Wholesale Banking 1,813 1,931 1,512Wealth, Brokerage and Retirement 291 333 256

Quarter ended

More financial information about the business segments is on pages 38 and 39.

Community Bankingoffers a complete line of diversified financial products and services for consumersand small businesses including investment, insurance and trust services in 39 states and D.C., andmortgage and home equity loans in all 50 states and D.C. through its Regional Banking and Wells Fargo

Home Mortgage business units.



(in millions) 2011 2011 2010

Total revenue 12,496$ 12,567 13,447Provision for credit losses 1,978 1,927 3,155Noninterest expense 6,901 7,418 7,333Segment net income 2,315 2,087 1,935

(in billions)Average loans 491.0 498.2 522.2Average assets 754.4 752.5 770.0Average core deposits 556.3 552.0 537.1

Quarter ended

Community Banking reported net income of $2.3 billion, up $228 million, or 11 percent, from prior quarter

and up $380 million, or 20 percent, from third quarter 2010. Revenue decreased $71 million from second

quarter 2011 driven primarily by a decline in equity gains primarily related to market conditions in thequarter, losses on deferred compensation plan investments (offset in employee benefits expense and

therefore neutral to the income statement), continued expected reductions in the home equity and Pick-A-

Pay loan portfolios, and lower yielding investment security purchases, partially offset by an increase in

mortgage banking income and lower deposit costs. Revenue decreased $951 million, or 7 percent, from third

quarter 2010 largely due to lower mortgage banking income, as well as expected reductions in the liquidating

loan portfolios and lower yielding investment security purchases, partially offset by long-term debt runoff,

lower deposit costs, equity gains and debit card customer growth. Noninterest expense decreased
http://www.wellsfargo.com/invest_relations/investor_relations/http://www.wellsfargo.com/invest_relations/investor_relations/http://www.wellsfargo.com/invest_relations/investor_relations/http://www.wellsfargo.com/invest_relations/investor_relations/


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$517 million, or 7 percent, from second quarter 2011, reflecting lower personnel costs (including active, full-

time equivalent reductions and lower deferred compensation benefits expense), litigation accruals, and credit

related costs. Noninterest expense decreased $432 million, or 6 percent, from third quarter 2010 due to

reduced expenses across most categories, led by personnel costs. The provision for credit losses increased

$51 million from second quarter 2011 and decreased $1.2 billion from third quarter 2010. Charge-offs

decreased $199 million from second quarter 2011 and $1.1 billion from third quarter 2010. The reserve

release was $450 million in third quarter 2011, compared with releases of $700 million and $400 million in

second quarter 2011 and third quarter 2010, respectively.

Regional Banking Highlights

Strong growth in checking accounts from September 30, 2010 (combined Regional Banking)o Consumer checking accounts up a net 5.6 percento Business checking accounts up a net 3.8 percento

Consumer checking accounts up a net 7.1 percent in California, 8.3 percent in New Jersey,9.8 percent in North Carolina and 7.7 percent in Florida

Strong solutions in third quarter 2011o West

Core product solutions (sales) of 8.80 million, up 15 percent from prior year Core sales per platform banker FTE (active, full-time equivalent) of 6.90 per day, up from 5.89 in

prior year

Sales ofWells Fargo Packages (a checking account and three other products) up 18 percentfrom prior year, purchased by 86 percent of new checking account customers

oEast

Eastern core product solutions grew by double-digits from prior year For eastern states on Wells Fargo systems the entire quarter, 83 percent of new checking account

customers purchased Wells Fargo Packages

Platform banker FTE grew by over 1,000, or 10 percent, from prior year Retail bank household cross-sell ratio for combined company of 5.91 products per household, up from

5.68 in third quarter 2010; cross-sell in the West of 6.28, compared with 5.39 in the East, represents the

opportunity to earn more business from customers in the East

Small Business/Business Bankingo In August, Wells Fargo, Americas leading SBA lender in dollars, became the nations first lender to

extend $1 billion in SBA 7(a) loan dollars to small businesses in a year

o Store-based business solutions up 8 percent from prior year (West)o Sales ofWells Fargo Business Services Packages (business checking account and at least three other

business products) up 32 percent from prior year, purchased by 73 percent of new business checking

account customers (West)

o Business Banking household cross-sell of 4.21 products per household (West)


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o Wells Fargo, Americas #1 small business lender, made $10.3 billion in new loan commitments to itssmall business customers in the first three quarters of 2011, an 8 percent increase in new dollars lent

from same period last year

Online and Mobile Bankingo 19.7 million combined active online customerso 6.7 million combined active mobile customerso Global Finance magazine ranked Wells Fargo Best Consumer Internet Bank in the U.S. (July 2011)

Wells Fargo Home Mortgage (Home Mortgage)

Home Mortgage applications of $169 billion, compared with $109 billion in prior quarter Home Mortgage application pipeline of $84 billion at quarter end, compared with $51 billion at

June 30, 2011

Home Mortgage originations of $89 billion, up from $64 billion in prior quarter Residential mortgage servicing portfolio of $1.8 trillion

Wholesale Bankingprovides financial solutions to businesses across the United States and globally withannual sales generally in excess of $20 million. Products & business segments include Middle MarketCommercial Banking, Government & Institutional Banking, Corporate Banking, Commercial Real Estate,Treasury Management, Wells Fargo Capital Finance, Insurance, International, Real Estate Capital

Markets, Commercial Mortgage Servicing, Corporate Trust, Equipment Finance, Investment Banking &Capital Markets, Securities Investment Portfolio, Asset Backed Finance, and Asset Management.



(in millions) 2011 2011 2010

Total revenue 5,150$ 5,631 5,388

Provision (reversal of provision) for credit losses (178) (97) 280Noninterest expense 2,689 2,766 2,719Segment net income 1,813 1,931 1,512

(in billions)Average loans 253.4 243.1 227.3Average assets 438.0 415.7 371.8Average core deposits 209.3 190.6 170.8

Quarter ended

Wholesale Banking reported net income of $1.8 billion, up $301 million, or 20 percent, from third quarter

2010 and decreased $118 million, or 6 percent, from the prior quarter. Revenue decreased $238 million, or

4 percent, from prior year as broad-based growth among many businesses, including strong loan and deposit

growth, was offset by lower PCI resolutions and weakness in fixed income sales and trading and investment

banking. Many businesses had revenue growth from the prior quarter, including asset-backed finance, capital

finance, commercial banking, government banking, and international. However, overall revenue decreased

$481 million, or 9 percent, from the prior quarter due to lower PCI resolutions, weakness in fixed income

sales and trading and investment banking and seasonally lower insurance fees. Noninterest expense

decreased $30 million, or 1 percent, from prior year related to lower personnel expenses and decreased

$77 million, or 3 percent, from prior quarter related to seasonally lower insurance expense and lower


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operating losses. The provision for credit losses was a net recovery of $178 million and declined $458 million

from third quarter 2010. The decrease included a $350 million reserve release in the current quarter versus a

$250 million reserve release a year ago along with a $358 million improvement in credit losses.

Weaker sales and trading results as consistent negative economic data, sovereign debt concerns and theU.S. debt downgrade pressured credit spreads and reduced prices on all financial assets, significantly

curtailing new issue origination and trading opportunities

Year-over-year and linked-quarter average loan growth in almost all portfolios, including asset-backedfinance, capital finance, commercial banking, commercial real estate, corporate banking, government

banking, and international, from both new and existing customer activity

Continued improvement in net charge-offs and nonperforming assets Average core deposits up 23 percent from prior year U.S. investment banking market share year to date of 4.8 percent, up from 4.2 percent for full year 2010

(source: Dealogic fee-based league tables) Wells Fargo selected Best Trade Outsourcing Bank in Asia Pacific byGlobal Trade Review

Wealth, Brokerage and Retirementprovides a full range of financial advisory services to clients usinga planning approach to meet each client's needs. Wealth Management provides affluent and high net worthclients with a complete range of wealth management solutions, including financial planning, privatebanking, credit, investment management and trust. Family Wealth meets the unique needs of ultra high networth customers. Brokerage serves customers' advisory, brokerage and financial needs as part of one ofthe largest full-service brokerage firms in the United States. Retirement is a national leader in providinginstitutional retirement and trust services (including 401(k) and pension plan record keeping) forbusinesses, retail retirement solutions for individuals, and reinsurance services for the life insuranceindustry.



(in millions) 2011 2011 2010

Total revenue 2,887$ 3,086 2,912Provision for credit losses 48 61 77Noninterest expense 2,368 2,487 2,420Segment net income 291 333 256

(in billions)Average loans 43.1 43.5 42.6Average assets 155.1 147.7 138.2

Average core deposits 133.4 126.0 120.7

Quarter ended

Wealth, Brokerage and Retirement reported net income of $291 million, down $42 million from second

quarter 2011 and up $35 million from third quarter 2010. Revenue was $2.9 billion, down 6 percent from

second quarter 2011 primarily due to losses on deferred compensation plan investments (offset in expense),

as well as lower securities gains in the brokerage business and reduced brokerage transaction revenue.

Revenue was down 1 percent from third quarter 2010 due to losses on deferred compensation plan

investments (offset in expense) and lower brokerage transaction revenue, partially offset by higher asset-

based revenues. Total provision for credit losses decreased $13 million from second quarter 2011 and


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$29 million from third quarter 2010. Noninterest expense declined 5 percent from second quarter on

reduced personnel costs (primarily due to lower deferred compensation) and reduced broker commissions.

Noninterest expense was down 2 percent from third quarter 2010 due to lower deferred compensation,

partially offset by growth in personnel costs largely due to increased broker commissions, driven by higher

production levels, and increased non-personnel costs. Average core deposits increased $7.4 billion from

second quarter 2011 and $12.7 billion from third quarter 2010.

Retail Brokerage

Strong deposit growth, with average balances up $11 billion, or 14 percent, from prior year Client assets of $1.1 trillion, down 3 percent from prior year Managed account assets increased $20 billion, or 9 percent, from prior year driven by strong net flows Completed sale of H.D. Vest Financial Services business on October 3, 2011

Wealth Management

Average deposit balances up 3 percent from prior year Investment and Fiduciary Services asset-based revenue up 9 percent from prior year

Retirement

Institutional Retirement plan assets of $228 billion, up $7 billion, or 3 percent, from prior year IRA assets of $261 billion, down $5 billion, or 2 percent, from prior year

Conference CallThe Company will host a live conference call on Monday, October 17, at 6:30 a.m. PDT (9:30 a.m. EDT). To

access the call, please dial 866-872-5161 (U.S. and Canada) or 706-643-1962 (international). No password is

required. The call is also available online atwellsfargo.com/invest_relations/earningsand

http://us.meeting-stream.com/wellsfargocompany_101711.

A replay of the conference call will be available beginning at approximately noon PDT (3 p.m. EDT) on

October 17 through Monday, October 24. Please dial 800-642-1687 (U.S. and Canada) or 706-645-9291

(international) and enter Conference ID #95565644. The replay will also be available online at

wellsfargo.com/invest_relations/earnings.
http://www.wellsfargo.com/invest_relations/earningshttp://www.wellsfargo.com/invest_relations/earningshttp://www.wellsfargo.com/invest_relations/earningshttp://us.meeting-stream.com/wellsfargocompany_101711http://us.meeting-stream.com/wellsfargocompany_101711http://www.wellsfargo.com/invest_relations/earningshttp://www.wellsfargo.com/invest_relations/earningshttp://us.meeting-stream.com/wellsfargocompany_101711http://www.wellsfargo.com/invest_relations/earnings


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Cautionary Statement about Forward-Looking Information

In accordance with the Private Securities Litigation Reform Act of 1995, we caution you that this news releasecontains forward-looking statements about our future financial performance and business. We makeforward-looking statements when we use words such as believe, expect, anticipate, estimate, target,should, may, can, will, outlook, project, appears or similar expressions. Forward-lookingstatements in this news release include, among others, statements about: (i) future credit quality and

expected or estimated future loan losses in our loan portfolios, and the adequacy of the allowance for loanlosses, including our current expectation of future reductions in the allowance for loan losses; (ii) ourtargeted noninterest expense for fourth quarter 2012 as part of our expense management initiatives; (iii) ourestimates regarding our Tier 1 common equity ratio under proposed Basel III capital regulations; and (iv) thetiming of expected integration activities related to the Wachovia merger.

Do not unduly rely on forward-looking statements as actual results could differ materially from expectations.Forward-looking statements speak only as of the date made, and we do not undertake to update them toreflect changes or events that occur after that date. Several factors could cause actual results to differmaterially from expectations including: current and future economic and market conditions, including theeffects of further declines in housing prices, high unemployment rates, U.S. fiscal debt and budget mattersand the sovereign debt crisis in Europe; our capital requirements (including under regulatory capitalstandards as determined and interpreted by applicable regulatory authorities such as the proposed Basel IIIcapital regulations) and our ability to generate capital internally or raise capital on favorable terms; financialservices reform and other current, pending or future legislation or regulation that could have a negative effecton our revenue and businesses (including the Dodd-Frank Wall Street Reform and Consumer Protection

Act); the extent of success in our loan modification efforts, including the effects of regulatory requirements,or changes in regulatory requirements, relating to loan modifications; the amount of mortgage loanrepurchase demands that we receive and our ability to satisfy any such demands without having torepurchase loans related thereto or otherwise indemnify or reimburse third parties; negative effects relatingto mortgage foreclosures, including changes in our procedures or practices and/or industry standards orpractices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs orobligations, including loan modification requirements, or delays or moratoriums on foreclosures; our abilityto realize our noninterest expense target as part of our expense management initiatives when and in theamount targeted, including as a result of business and economic cyclicality, seasonality, changes in our

business composition and operating environment, growth in our businesses and/or acquisitions, andunexpected expenses relating to, among other things, litigation and regulatory matters; our ability to

successfully and timely integrate the Wachovia merger and realize the expected cost savings and otherbenefits, including delays or disruptions in system conversions; recognition of other-than-temporaryimpairment on securities held in our available-for-sale portfolio; the effect of changes in interest rates on ournet interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;hedging gains or losses; disruptions in the capital markets and reduced investor demand for mortgage loans;our ability to sell more products to our customers; the effect of the economic recession on the demand for ourproducts and services; the effect of fluctuations in stock market prices on fee income from our brokerage,asset and wealth management businesses; our election to provide support to our mutual funds for structuredcredit products they may hold; changes in the value of our venture capital investments; changes in ouraccounting policies or in accounting standards or in how accounting standards are to be applied; changes inour credit ratings and changes in the credit ratings of our customers or counterparties; mergers andacquisitions; federal and state regulations; reputational damage from negative publicity, fines, penalties andother negative consequences from regulatory violations; the loss of checking and saving account deposits to

other investments such as the stock market; and fiscal and monetary policies of the Federal Reserve Board.There is no assurance that our allowance for credit losses will be adequate to cover future credit losses,especially if housing prices and unemployment do not improve. Increases in loan charge-offs or in theallowance for credit losses and related provision expense could materially adversely affect our financialresults and condition. For more information about factors that could cause actual results to differ materiallyfrom our expectations, refer to our reports filed with the Securities and Exchange Commission, including thediscussion under Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended June 30,2011,as filed with the SEC and available on the SECs website atwww.sec.gov. Any factor described above or in ourSEC reports could, by itself or together with one or more other factors, adversely affect our financial resultsand condition.
http://www.sec.gov/http://www.sec.gov/http://www.sec.gov/http://www.sec.gov/


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- 14 -

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services

company with $1.3 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo

provides banking, insurance, investments, mortgage, and consumer and commercial finance through more

than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com and wachovia.com), and other distribution

channels across North America and internationally. With more than 270,000 team members, Wells Fargo

serves one in three households in America. Wells Fargo & Company was ranked No. 23 on Fortunes 2011

rankings of Americas largest corporations. Wells Fargos vision is to satisfy all our customers financial needs

and help them succeed financially.

# # #


15/42

Wells Fargo & Company and Subsidiaries

QUARTERLY FINANCIAL DATATABLE OF CONTENTS

Pages

Summary Information

Summary Financial Data 16-17

Income

Consolidated Statement of Income 18-19

Average Balances, Yields and Rates Paid 20-21

Noninterest Income and Noninterest Expense 22-23

Balance Sheet

Consolidated Balance Sheet 24-25

Average Balances 26

Loans

Loans 27

Nonaccrual Loans and Foreclosed Assets 27

Loans 90 Days or More Past Due and Still Accruing 28

Purchased Credit-Impaired Loans 29-31

Pick-A-Pay Portfolio 32

Non-Strategic and Liquidating Loan Portfolios 33

Home Equity Portfolios 33

Allowance for Credit Losses 34-35

Equity

Condensed Consolidated Statement of Changes in Total Equity 36

Tier 1 Common Equity 37

Operating Segments

Operating Segment Results 38-39

Other

Mortgage Servicing and other related data 40-42


16/42

16

Wells Fargo & Company and SubsidiariesSUMMARY FINANCIAL DATA

Quarter ended Sept. 30, % Nine months ended Sept. 30, %

($ in millions, except per share amounts) 2011 2010 Change 2011 2010 Change

For the Period

Wells Fargo net income $ 4,055 3,339 21 % $ 11,762 8,948 31 %

Wells Fargo net income applicable to common stock 3,839 3,150 22 11,137 8,400 33

Diluted earnings per common share 0.72 0.60 20 2.09 1.60 31

Profitability ratios (annualized):

Wells Fargo net income to average assets (ROA) 1.26 % 1.09 15 1.25 0.98 28

Wells Fargo net income applicable to common stock toaverage Wells Fargo common stockholders' equity(ROE) 11.86 10.90 9 11.92 10.11 18

Efficiency ratio (1) 59.5 58.7 1 61.1 58.3 5

Total revenue $ 19,628 20,874 (6) $ 60,343 63,716 (5)

Pre-tax pre-provision profit (PTPP) (2) 7,951 8,621 (8) 23,458 26,600 (12)

Dividends declared per common share 0.12 0.05 140 0.36 0.15 140

Average common shares outstanding 5,275.5 5,240.1 1 5,280.2 5,216.9 1

Diluted average common shares outstanding 5,319.2 5,273.2 1 5,325.6 5,252.9 1

Average loans $ 754,544 759,483 (1) $ 753,293 776,305 (3)

Average assets 1,281,369 1,220,368 5 1,257,977 1,223,535 3

Average core deposits (3) 836,845 771,957 8 813,865 764,345 6

Average retail core deposits (4) 599,227 571,062 5 592,156 572,567 3

Net interest margin 3.84 % 4.25 (10) 3.96 4.30 (8)

At Period End

Securities available for sale $ 207,176 176,875 17 $ 207,176 176,875 17

Loans 760,106 753,664 1 760,106 753,664 1

Allowance for loan losses 20,039 23,939 (16) 20,039 23,939 (16)

Goodwill 25,038 24,831 1 25,038 24,831 1

Assets 1,304,945 1,220,784 7 1,304,945 1,220,784 7

Core deposits (3) 849,632 771,792 10 849,632 771,792 10

Wells Fargo stockholders' equity 137,768 123,658 11 137,768 123,658 11

Total equity 139,244 125,165 11 139,244 125,165 11

Capital ratios:

Total equity to assets 10.67 % 10.25 4 10.67 10.25 4

Risk-based capital (5):

Tier 1 capital 11.28 10.90 3 11.28 10.90 3Total capital 14.88 14.88 - 14.88 14.88 -

Tier 1 leverage (5) 8.97 9.01 - 8.97 9.01 -

Tier 1 common equity (6) 9.35 8.01 17 9.35 8.01 17

Common shares outstanding 5,272.2 5,244.4 1 5,272.2 5,244.4 1

Book value per common share $ 24.13 22.04 9 $ 24.13 22.04 9

Common stock price:

High 29.63 28.77 3 34.25 34.25 -

Low 22.58 23.02 (2) 22.58 23.02 (2)

Period end 24.12 25.12 (4) 24.12 25.12 (4)

Team members (active, full-time equivalent) 263,800 266,900 (1) 263,800 266,900 (1)

(1)The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).(2)Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors

and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle.

(3)Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits(Eurodollar sweep balances).

(4)Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.(5)The September 30, 2011, ratios are preliminary.(6)See the "Five Quarter Tier 1 Common Equity Under Basel I" table for additional information.


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17

Wells Fargo & Company and SubsidiariesFIVE QUARTER SUMMARY FINANCIAL DATA

Quarter ended

Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30

($ in millions, except per share amounts) 2011 2011 2011 2010 2010

For the Quarter

Wells Fargo net income $ 4,055 3,948 3,759 3,414 3,339

Wells Fargo net income applicable to common stock 3,839 3,728 3,570 3,232 3,150

Diluted earnings per common share 0.72 0.70 0.67 0.61 0.60

Profitability ratios (annualized):

Wells Fargo net income to average assets (ROA) 1.26 % 1.27 1.23 1.09 1.09

Wells Fargo net income applicable to common stock to average

Wells Fargo common stockholders' equity (ROE) 11.86 11.92 11.98 10.95 10.90

Efficiency ratio (1) 59.5 61.2 62.6 62.1 58.7

Total revenue $ 19,628 20,386 20,329 21,494 20,874

Pre-tax pre-provision profit (PTPP) (2) 7,951 7,911 7,596 8,154 8,621

Dividends declared per common share 0.12 0.12 0.12 0.05 0.05

Average common shares outstanding 5,275.5 5,286.5 5,278.8 5,256.2 5,240.1

Diluted average common shares outstanding 5,319.2 5,331.7 5,333.1 5,293.8 5,273.2

Average loans $ 754,544 751,253 754,077 753,675 759,483

Average assets 1,281,369 1,250,945 1,241,176 1,237,037 1,220,368

Average core deposits (3) 836,845 807,483 796,826 794,799 771,957Average retail core deposits (4) 599,227 592,974 584,100 573,843 571,062

Net interest margin 3.84 % 4.01 4.05 4.16 4.25

At Quarter End

Securities available for sale $ 207,176 186,298 167,906 172,654 176,875

Loans 760,106 751,921 751,155 757,267 753,664

Allowance for loan losses 20,039 20,893 21,983 23,022 23,939

Goodwill 25,038 24,776 24,777 24,770 24,831

Assets 1,304,945 1,259,734 1,244,666 1,258,128 1,220,784

Core deposits (3) 849,632 808,970 795,038 798,192 771,792

Wells Fargo stockholders' equity 137,768 136,401 133,471 126,408 123,658

Total equity 139,244 137,916 134,943 127,889 125,165

Capital ratios:

Total equity to assets 10.67 % 10.95 10.84 10.16 10.25

Risk-based capital (5):

Tier 1 capital 11.28 11.69 11.50 11.16 10.90

Total capital 14.88 15.41 15.30 15.01 14.88

Tier 1 leverage (5) 8.97 9.43 9.27 9.19 9.01

Tier 1 common equity (6) 9.35 9.15 8.93 8.30 8.01

Common shares outstanding 5,272.2 5,278.2 5,300.9 5,262.3 5,244.4

Book value per common share $ 24.13 23.84 23.18 22.49 22.04

Common stock price:

High 29.63 32.63 34.25 31.61 28.77

Low 22.58 25.26 29.82 23.37 23.02

Period end 24.12 28.06 31.71 30.99 25.12

Team members (active, full-time equivalent) 263,800 266,600 270,200 272,200 266,900

(1)The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).(2) Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and

others to assess the Company's ability to generate capital to cover credit losses through a credit cycle.

(3) Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits(Eurodollar sweep balances).

(4) Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.

(5) The September 30, 2011, ratios are preliminary.

(6) See the "Five Quarter Tier 1 Common Equity Under Basel I" table for additional information.


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18

Wells Fargo & Company and SubsidiariesCONSOLIDATED STATEMENT OF INCOME

Nine months

Quarter ended Sept. 30, % ended Sept. 30, %

(in millions, except per share amounts) 2011 2010 Change 2011 2010 Change

Interest income

Trading assets $ 343 270 27 % $ 1,040 803 30 %

Securities available for sale 2,053 2,492 (18) 6,383 7,292 (12)

Mortgages held for sale 389 449 (13) 1,188 1,241 (4)

Loans held for sale 13 22 (41) 42 86 (51)

Loans 9,224 9,779 (6) 27,972 30,094 (7)

Other interest income 156 118 32 409 311 32

Total interest income 12,178 13,130 (7) 37,034 39,827 (7)

Interest expense

Deposits 559 721 (22) 1,768 2,170 (19)

Short-term borrowings 20 27 (26) 66 66 -

Long-term debt 980 1,226 (20) 3,093 3,735 (17)

Other interest expense 77 58 33 236 162 46

Total interest expense 1,636 2,032 (19) 5,163 6,133 (16)

Net interest income 10,542 11,098 (5) 31,871 33,694 (5)

Provision for credit losses 1,811 3,445 (47) 5,859 12,764 (54)

Net interest income after provision for credit losses 8,731 7,653 14 26,012 20,930 24

Noninterest income

Service charges on deposit accounts 1,103 1,132 (3) 3,189 3,881 (18)

Trust and investment fees 2,786 2,564 9 8,646 7,976 8

Card fees 1,013 935 8 2,973 2,711 10

Other fees 1,085 1,004 8 3,097 2,927 6

Mortgage banking 1,833 2,499 (27) 5,468 6,980 (22)

Insurance 423 397 7 1,494 1,562 (4)

Net gains (losses) from trading activities (442) 470 NM 584 1,116 (48)

Net gains (losses) on debt securities available for sale 300 (114) NM 6 (56) NM

Net gains from equity investments 344 131 163 1,421 462 208

Operating leases 284 222 28 464 736 (37)

Other 357 536 (33) 1,130 1,727 (35)

Total noninterest income 9,086 9,776 (7) 28,472 30,022 (5)

Noninterest expense

Salaries 3,718 3,478 7 10,756 10,356 4

Commission and incentive compensation 2,088 2,280 (8) 6,606 6,497 2

Employee benefits 780 1,074 (27) 3,336 3,459 (4)

Equipment 516 557 (7) 1,676 1,823 (8)

Net occupancy 751 742 1 2,252 2,280 (1)

Core deposit and other intangibles 466 548 (15) 1,413 1,650 (14)

FDIC and other deposit assessments 332 300 11 952 896 6

Other 3,026 3,274 (8) 9,894 10,155 (3)

Total noninterest expense 11,677 12,253 (5) 36,885 37,116 (1)

Income before income tax expense 6,140 5,176 19 17,599 13,836 27

Income tax expense 1,998 1,751 14 5,571 4,666 19

Net income before noncontrolling interests 4,142 3,425 21 12,028 9,170 31

Less: Net income from noncontrolling interests 87 86 1 266 222 20

Wells Fargo net income $ 4,055 3,339 21 $ 11,762 8,948 31

Less: Preferred stock dividends and other 216 189 14 625 548 14

Wells Fargo net income applicable to common stock $ 3,839 3,150 22 $ 11,137 8,400 33

Per share information

Earnings per common share $ 0.73 0.60 22 $ 2.11 1.61 31

Diluted earnings per common share 0.72 0.60 20 2.09 1.60 31

Dividends declared per common share 0.12 0.05 140 0.36 0.15 140

Average common shares outstanding 5,275.5 5,240.1 1 5,280.2 5,216.9 1

Diluted average common shares outstanding 5,319.2 5,273.2 1 5,325.6 5,252.9 1

NM - Not meaningful


19/42

19

Wells Fargo & Company and SubsidiariesFIVE QUARTER CONSOLIDATED STATEMENT OF INCOME

Quarter ended


(in millions, except per share amounts) 2011 2011 2011 2010 2010

Interest income

Trading assets $ 343 347 350 295 270

Securities available for sale 2,053 2,166 2,164 2,374 2,492

Mortgages held for sale 389 362 437 495 449

Loans held for sale 13 17 12 15 22

Loans 9,224 9,361 9,387 9,666 9,779

Other interest income 156 131 122 124 118

Total interest income 12,178 12,384 12,472 12,969 13,130

Interest expense

Deposits 559 594 615 662 721

Short-term borrowings 20 20 26 26 27

Long-term debt 980 1,009 1,104 1,153 1,226

Other interest expense 77 83 76 65 58

Total interest expense 1,636 1,706 1,821 1,906 2,032

Net interest income 10,542 10,678 10,651 11,063 11,098

Provision for credit losses 1,811 1,838 2,210 2,989 3,445

Net interest income after provision for credit losses 8,731 8,840 8,441 8,074 7,653

Noninterest income

Service charges on deposit accounts 1,103 1,074 1,012 1,035 1,132

Trust and investment fees 2,786 2,944 2,916 2,958 2,564

Card fees 1,013 1,003 957 941 935

Other fees 1,085 1,023 989 1,063 1,004

Mortgage banking 1,833 1,619 2,016 2,757 2,499

Insurance 423 568 503 564 397

Net gains (losses) from trading activities (442) 414 612 532 470

Net gains (losses) on debt securities available for sale 300 (128) (166) (268) (114

Net gains from equity investments 344 724 353 317 131

Operating leases 284 103 77 79 222

Other 357 364 409 453 536

Total noninterest income 9,086 9,708 9,678 10,431 9,776

Noninterest expense

Salaries 3,718 3,584 3,454 3,513 3,478

Commission and incentive compensation 2,088 2,171 2,347 2,195 2,280

Employee benefits 780 1,164 1,392 1,192 1,074

Equipment 516 528 632 813 557

Net occupancy 751 749 752 750 742

Core deposit and other intangibles 466 464 483 549 548

FDIC and other deposit assessments 332 315 305 301 300

Other 3,026 3,500 3,368 4,027 3,274

Total noninterest expense 11,677 12,475 12,733 13,340 12,253

Income before income tax expense 6,140 6,073 5,386 5,165 5,176

Income tax expense 1,998 2,001 1,572 1,672 1,751

Net income before noncontrolling interests 4,142 4,072 3,814 3,493 3,425

Less: Net income from noncontrolling interests 87 124 55 79 86

Wells Fargo net income $ 4,055 3,948 3,759 3,414 3,339

Less: Preferred stock dividends and other 216 220 189 182 189

Wells Fargo net income applicable to common stock $ 3,839 3,728 3,570 3,232 3,150

Per share information

Earnings per common share $ 0.73 0.70 0.68 0.62 0.60

Diluted earnings per common share 0.72 0.70 0.67 0.61 0.60

Dividends declared per common share 0.12 0.12 0.12 0.05 0.05

Average common shares outstanding 5,275.5 5,286.5 5,278.8 5,256.2 5,240.1

Diluted average common shares outstanding 5,319.2 5,331.7 5,333.1 5,293.8 5,273.2


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20

Wells Fargo & Company and SubsidiariesAVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

Quarter ended September 30

2011 2010

Interest Interes

Average Yields/ income/ Average Yields/ income

(in millions) balance rates expense balance rates expens

Earning assets

Federal funds sold, securities purchased under resale agreementsand other short-term investments $ 98,909 0.42 % $ 105 70,839 0.38 % $ 67

Trading assets 37,939 3.67 348 29,080 3.77 275

Securities available for sale (3):

Securities of U.S. Treasury and federal agencies 9,635 1.02 24 1,673 2.79 11

Securities of U.S. states and political subdivisions 25,827 4.93 315 17,220 5.89 249

Mortgage-backed securities:

Federal agencies 77,309 4.41 804 70,486 5.35 885

Residential and commercial 34,242 7.46 609 33,425 12.53 987

Total mortgage-backed securities 111,551 5.36 1,413 103,911 7.67 1,872

Other debt and equity securities 40,720 4.69 457 35,533 6.02 503

Total securities available for sale 187,733 4.92 2,209 158,337 7.05 2,635

Mortgages held for sale (4) 34,634 4.49 389 38,073 4.72 449Loans held for sale (4) 968 5.21 13 3,223 2.71 22

Loans:

Commercial:

Commercial and industrial 159,625 4.22 1,697 146,139 4.57 1,679

Real estate mortgage 102,428 3.93 1,015 99,082 4.15 1,036

Real estate construction 20,537 6.12 317 29,469 3.31 246

Lease financing 12,964 7.21 234 13,156 9.07 298

Foreign 38,175 2.42 233 30,276 3.15 240

Total commercial 333,729 4.16 3,496 318,122 4.37 3,499

Consumer:

Real estate 1-4 family first mortgage 223,765 4.83 2,704 231,172 5.16 2,987

Real estate 1-4 family junior lien mortgage 89,065 4.37 980 100,257 4.41 1,114

Credit card 21,452 12.96 695 22,048 13.57 748

Other revolving credit and installment 86,533 6.25 1,364 87,884 6.50 1,441

Total consumer 420,815 5.44 5,743 441,361 5.68 6,290

Total loans (4) 754,544 4.87 9,239 759,483 5.13 9,789

Other 4,831 4.18 50 5,912 3.53 53

Total earning assets $ 1,119,558 4.43 % $ 12,353 1,064,947 5.01 % $ 13,290

Funding sources

Deposits:Interest-bearing checking $ 43,986 0.07 % $ 8 59,677 0.10 % $ 15

Market rate and other savings 473,409 0.17 198 419,996 0.25 269

Savings certificates 67,633 1.47 251 85,044 1.50 322

Other time deposits 12,809 2.02 65 14,400 2.33 83

Deposits in foreign offices 63,548 0.23 37 52,061 0.24 32

Total interest-bearing deposits 661,385 0.34 559 631,178 0.45 721Short-term borrowings 50,373 0.18 23 46,468 0.26 31

Long-term debt 139,542 2.81 980 177,077 2.76 1,226

Other liabilities 11,170 2.75 77 6,764 3.39 58

Total interest-bearing liabilities 862,470 0.76 1,639 861,487 0.94 2,036

Portion of noninterest-bearing funding sources 257,088 - - 203,460 - -

Total funding sources $ 1,119,558 0.59 1,639 1,064,947 0.76 2,036

Net interest margin and net interest income

on a taxable-equivalent basis (5) 3.84 % $ 10,714 4.25 % $ 11,254

Noninterest-earning assetsCash and due from banks $ 17,101 17,000

Goodwill 25,008 24,829

Other 119,702 113,592

Total noninterest-earning assets $ 161,811 155,421

Noninterest-bearing funding sources

Deposits $ 221,182 184,837

Other liabilities 57,464 50,013Total equity 140,253 124,031

Noninterest-bearing funding sources used to fund earning assets (257,088) (203,460)

Net noninterest-bearing funding sources $ 161,811 155,421

Total assets $ 1,281,369 1,220,368

(1)Our average prime rate was 3.25% for the quarters ended September 30, 2011 and 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.30% and0.39% for the same quarters, respectively.

(2) Yield/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balanceamounts include the effects of any unrealized gain or loss marks but those marks carried in other comprehensive income are not included in yield determination of affectedearning assets. Thus yields are based on amortized cost balances computed on a settlement date basis.

(4) Nonaccrual loans and related income are included in their respective loan categories.

(5) Includes taxable-equivalent adjustments of $172 million and $156 million for September 30, 2011 and 2010, respectively, primarily related to tax-exempt income on certainloans and securities. The federal statutory tax rate utilized was 35% for the periods presented.


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21

Wells Fargo & Company and SubsidiariesAVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

Nine months ended September 30

2011 2010

Interest Interes

Average Yields/ income/ Average Yields/ income

(in millions) balance rates expense balance rates expens

Earning assets

Federal funds sold, securities purchased under resale agreementsand other short-term investments $ 93,661 0.37 % $ 257 59,905 0.35 % $ 156

Trading assets 37,788 3.73 1,056 28,588 3.82 819

Securities available for sale (3):

Securities of U.S. Treasury and federal agencies 4,463 1.43 47 2,013 3.36 49

Securities of U.S. states and political subdivisions 22,692 5.21 887 15,716 6.29 725


Federal agencies 75,073 4.63 2,480 74,330 5.38 2,838

Residential and commercial 33,242 8.64 2,005 33,133 10.58 2,546

Total mortgage-backed securities 108,315 5.84 4,485 107,463 7.01 5,384

Other debt and equity securities 37,910 5.32 1,423 33,727 6.56 1,557

Total securities available for sale 173,380 5.52 6,842 158,919 6.80 7,715

Mortgages held for sale (4) 34,668 4.57 1,188 33,903 4.88 1,241Loans held for sale (4) 1,100 5.05 42 4,660 2.46 86

Loans:

Commercial:

Commercial and industrial 154,469 4.48 5,181 150,153 4.83 5,431Real estate mortgage 101,230 4.00 3,033 98,264 3.91 2,875

Real estate construction 22,255 4.96 826 32,770 3.27 801

Lease financing 12,961 7.59 737 13,592 9.28 946

Foreign 36,103 2.62 708 29,302 3.46 758

Total commercial 327,018 4.28 10,485 324,081 4.46 10,811

Consumer:

Real estate 1-4 family first mortgage 226,048 4.93 8,363 237,848 5.22 9,305

Real estate 1-4 family junior lien mortgage 91,881 4.32 2,973 102,839 4.47 3,444

Credit card 21,305 13.04 2,084 22,539 13.32 2,251

Other revolving credit and installment 87,041 6.31 4,107 88,998 6.49 4,320

Total consumer 426,275 5.49 17,527 452,224 5.70 19,320

Total loans (4) 753,293 4.97 28,012 776,305 5.18 30,131

Other 5,017 4.06 153 6,021 3.45 156

Total earning assets $ 1,098,907 4.59 % $ 37,550 1,068,301 5.07 % $ 40,304

Funding sources

Deposits:

Interest-bearing checking $ 51,891 0.09 % $ 34 60,961 0.13 % $ 57

Market rate and other savings 457,483 0.19 661 412,060 0.27 822

Savings certificates 71,343 1.43 762 89,824 1.43 962

Other time deposits 13,212 2.10 208 15,066 2.08 235

Deposits in foreign offices 59,662 0.23 103 54,973 0.23 94

Total interest-bearing deposits 653,591 0.36 1,768 632,884 0.46 2,170

Short-term borrowings 52,805 0.19 77 45,549 0.22 75

Long-term debt 145,000 2.85 3,093 193,724 2.57 3,735

Other liabilities 10,547 2.99 236 6,393 3.38 162

Total interest-bearing liabilities 861,943 0.80 5,174 878,550 0.93 6,142

Portion of noninterest-bearing funding sources 236,964 - - 189,751 - -

Total funding sources $ 1,098,907 0.63 5,174 1,068,301 0.77 6,142

Net interest margin and net interest income

on a taxable-equivalent basis (5) 3.96 % $ 32,376 4.30 % $ 34,162

Noninterest-earning assets

Cash and due from banks $ 17,277 17,484

Goodwill 24,853 24,822

Other 116,940 112,928

Total noninterest-earning assets $ 159,070 155,234

Noninterest-bearing funding sources

Deposits $ 204,643 177,975

Other liabilities 55,324 46,174Total equity 136,067 120,836

Noninterest-bearing funding sources used to fund earning assets (236,964) (189,751)

Net noninterest-bearing funding sources $ 159,070 155,234

Total assets $ 1,257,977 1,223,535

(1) Our average prime rate was 3.25% for the nine months ended September 30, 2011 and 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.29%and 0.36% for the same periods, respectively.

(2) Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balanceamounts include the effects of any unrealized gain or loss marks but those marks carried in other comprehensive income are not included in yield determination of affectedearning assets. Thus yields are based on amortized cost balances computed on a settlement date basis.

(4) Nonaccrual loans and related income are included in their respective loan categories.

(5) Includes taxable-equivalent adjustments of $505 million and $468 million for September 30, 2011 and 2010, respectively, primarily related to tax-exempt income on certainloans and securities. The federal statutory tax rate was 35% for the periods presented.


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22

Wells Fargo & Company and SubsidiariesNONINTEREST INCOME

Nine months


(in millions) 2011 2010 Change 2011 2010 Change

Service charges on deposit accounts $ 1,103 1,132 (3)% $ 3,189 3,881 (18)%

Trust and investment fees:

Trust, investment and IRA fees 1,019 924 10 3,099 3,008 3

Commissions and all other fees 1,767 1,640 8 5,547 4,968 12

Total trust and investment fees 2,786 2,564 9 8,646 7,976 8

Card fees 1,013 935 8 2,973 2,711 10

Other fees:

Cash network fees 105 73 44 280 186 51

Charges and fees on loans 438 424 3 1,239 1,244 -

Processing and all other fees 542 507 7 1,578 1,497 5

Total other fees 1,085 1,004 8 3,097 2,927 6

Mortgage banking:

Servicing income, net 1,030 516 100 2,773 3,100 (11)

Net gains on mortgage loan origination/sales activities 803 1,983 (60) 2,695 3,880 (31)

Total mortgage banking 1,833 2,499 (27) 5,468 6,980 (22)

Insurance 423 397 7 1,494 1,562 (4)

Net gains (losses) from trading activities (442) 470 NM 584 1,116 (48)

Net gains (losses) on debt securities available for sale 300 (114) NM 6 (56) NM

Net gains from equity investments 344 131 163 1,421 462 208


All other 357 536 (33) 1,130 1,727 (35)

Total $ 9,086 9,776 (7) $ 28,472 30,022 (5)

NM - Not meaningful

NONINTEREST EXPENSENine months


(in millions) 2011 2010 Change 2011 2010 Change

Salaries $ 3,718 3,478 7 % $ 10,756 10,356 4 %

Commission and incentive compensation 2,088 2,280 (8) 6,606 6,497 2

Employee benefits 780 1,074 (27) 3,336 3,459 (4)

Equipment 516 557 (7) 1,676 1,823 (8)

Net occupancy 751 742 1 2,252 2,280 (1)

Core deposit and other intangibles 466 548 (15) 1,413 1,650 (14)

FDIC and other deposit assessments 332 300 11 952 896 6

Outside professional services 640 533 20 1,879 1,589 18

Contract services 341 430 (21) 1,051 1,161 (9)

Foreclosed assets 271 366 (26) 984 1,085 (9)

Operating losses 198 230 (14) 1,098 1,065 3

Outside data processing 226 263 (14) 678 811 (16)

Postage, stationery and supplies 240 233 3 711 705 1

Travel and entertainment 198 195 2 609 562 8Advertising and promotion 159 170 (6) 441 438 1

Telecommunications 128 146 (12) 394 445 (11)

Insurance 94 62 52 428 374 14


All other 502 625 (20) 1,537 1,835 (16)

Total $ 11,677 12,253 (5) $ 36,885 37,116 (1)


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23

Wells Fargo & Company and SubsidiariesFIVE QUARTER NONINTEREST INCOME

Quarter ended


(in millions) 2011 2011 2011 2010 2010

Service charges on deposit accounts $ 1,103 1,074 1,012 1,035 1,132

Trust and investment fees:

Trust, investment and IRA fees 1,019 1,020 1,060 1,030 924

Commissions and all other fees 1,767 1,924 1,856 1,928 1,640

Total trust and investment fees 2,786 2,944 2,916 2,958 2,564

Card fees 1,013 1,003 957 941 935

Other fees:

Cash network fees 105 94 81 74 73

Charges and fees on loans 438 404 397 446 424

Processing and all other fees 542 525 511 543 507

Total other fees 1,085 1,023 989 1,063 1,004

Mortgage banking:

Servicing income, net 1,030 877 866 240 516

Net gains on mortgage loan origination/sales activities 803 742 1,150 2,517 1,983

Total mortgage banking 1,833 1,619 2,016 2,757 2,499

Insurance 423 568 503 564 397

Net gains (losses) from trading activities (442) 414 612 532 470

Net gains (losses) on debt securities available for sale 300 (128) (166) (268) (114

Net gains from equity investments 344 724 353 317 131


All other 357 364 409 453 536

Total $ 9,086 9,708 9,678 10,431 9,776

FIVE QUARTER NONINTEREST EXPENSEQuarter ended


(in millions) 2011 2011 2011 2010 2010

Salaries $ 3,718 3,584 3,454 3,513 3,478

Commission and incentive compensation 2,088 2,171 2,347 2,195 2,280

Employee benefits 780 1,164 1,392 1,192 1,074

Equipment 516 528 632 813 557

Net occupancy 751 749 752 750 742

Core deposit and other intangibles 466 464 483 549 548

FDIC and other deposit assessments 332 315 305 301 300

Outside professional services 640 659 580 781 533

Contract services 341 341 369 481 430

Foreclosed assets 271 305 408 452 366

Operating losses 198 428 472 193 230

Outside data processing 226 232 220 235 263

Postage, stationery and supplies 240 236 235 239 233

Travel and entertainment 198 205 206 221 195

Advertising and promotion 159 166 116 192 170Telecommunications 128 132 134 151 146

Insurance 94 201 133 90 62


All other 502 564 471 968 625

Total $ 11,677 12,475 12,733 13,340 12,253


24/42

24

Wells Fargo & Company and SubsidiariesCONSOLIDATED BALANCE SHEET

Sept. 30, Dec. 31, %

(in millions, except shares) 2011 2010 Change

Assets

Cash and due from banks $ 18,314 16,044 14

Federal funds sold, securities purchased under resale agreements and other short-term investments 89,804 80,637 11

Trading assets 57,786 51,414 12Securities available for sale 207,176 172,654 20

Mortgages held for sale (includes $38,845 and $47,531 carried at fair value) 42,704 51,763 (18

Loans held for sale (includes $495 and $873 carried at fair value) 743 1,290 (42

Loans (includes $0 and $309 carried at fair value) 760,106 757,267 -

Allowance for loan losses (20,039) (23,022) (13

Net loans 740,067 734,245 1

Mortgage servicing rights:

Measured at fair value 12,372 14,467 (14

Amortized 1,397 1,419 (2

Premises and equipment, net 9,607 9,644 -

Goodwill 25,038 24,770 1

Other assets 99,937 99,781 -

Total assets $ 1,304,945 1,258,128 4

Liabilities

Noninterest-bearing deposits $ 229,863 191,256 20

Interest-bearing deposits 665,565 656,686 1

Total deposits 895,428 847,942 6

Short-term borrowings 50,775 55,401 (8

Accrued expenses and other liabilities 86,284 69,913 23

Long-term debt (includes $0 and $306 carried at fair value) 133,214 156,983 (15

Total liabilities 1,165,701 1,130,239 3

Equity

Wells Fargo stockholders' equity:

Preferred stock 11,566 8,689 33

Common stock $1-2/3 par value, authorized 9,000,000,000 shares;

issued 5,341,553,681 and 5,272,414,622 shares 8,902 8,787 1Additional paid-in capital 55,495 53,426 4

Retained earnings 61,135 51,918 18

Cumulative other comprehensive income 3,828 4,738 (19

Treasury stock 69,333,156 shares and 10,131,394 shares (2,087) (487) 329

Unearned ESOP shares (1,071) (663) 62

Total Wells Fargo stockholders' equity 137,768 126,408 9

Noncontrolling interests 1,476 1,481 -

Total equity 139,244 127,889 9

Total liabilities and equity $ 1,304,945 1,258,128 4


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25

Wells Fargo & Company and SubsidiariesFIVE QUARTER CONSOLIDATED BALANCE SHEET


(in millions) 2011 2011 2010 2010 2010

Assets

Cash and due from banks $ 18,314 24,059 16,978 16,044 16,001

Federal funds sold, securities purchased under

resale agreements and other short-term investments 89,804 88,406 93,041 80,637 56,549Trading assets 57,786 54,770 57,890 51,414 49,271

Securities available for sale 207,176 186,298 167,906 172,654 176,875

Mortgages held for sale 42,704 31,254 33,121 51,763 46,001

Loans held for sale 743 1,512 1,428 1,290 1,188

Loans 760,106 751,921 751,155 757,267 753,664

Allowance for loan losses (20,039) (20,893) (21,983) (23,022) (23,939

Net loans 740,067 731,028 729,172 734,245 729,725

Mortgage servicing rights:

Measured at fair value 12,372 14,778 15,648 14,467 12,486

Amortized 1,397 1,422 1,423 1,419 1,013

Premises and equipment, net 9,607 9,613 9,545 9,644 9,636

Goodwill 25,038 24,776 24,777 24,770 24,831

Other assets 99,937 91,818 93,737 99,781 97,208

Total assets $ 1,304,945 1,259,734 1,244,666 1,258,128 1,220,784

Liabilities

Noninterest-bearing deposits $ 229,863 202,143 190,959 191,256 184,451

Interest-bearing deposits 665,565 651,492 646,703 656,686 630,061

Total deposits 895,428 853,635 837,662 847,942 814,512

Short-term borrowings 50,775 53,881 54,737 55,401 50,715

Accrued expenses and other liabilities 86,284 71,430 68,721 69,913 67,249

Long-term debt 133,214 142,872 148,603 156,983 163,143

Total liabilities 1,165,701 1,121,818 1,109,723 1,130,239 1,095,619

Equity

Wells Fargo stockholders' equity:

Preferred stock 11,566 11,730 11,897 8,689 8,840

Common stock 8,902 8,876 8,854 8,787 8,756Additional paid-in capital 55,495 55,226 54,815 53,426 52,899

Retained earnings 61,135 57,942 54,855 51,918 48,953

Cumulative other comprehensive income 3,828 5,422 5,021 4,738 5,502

Treasury stock (2,087) (1,546) (541) (487) (466

Unearned ESOP shares (1,071) (1,249) (1,430) (663) (826

Total Wells Fargo stockholders' equity 137,768 136,401 133,471 126,408 123,658

Noncontrolling interests 1,476 1,515 1,472 1,481 1,507

Total equity 139,244 137,916 134,943 127,889 125,165

Total liabilities and equity $ 1,304,945 1,259,734 1,244,666 1,258,128 1,220,784


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26

Wells Fargo & Company and SubsidiariesFIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)

Quarter ended

Sept. 30, 2011 June 30, 2011 Mar. 31, 2011 Dec. 31, 2010 Sept. 30, 2010

Average Yields/ Average Yields/ Average Yields/ Average Yields/ Average Yields/($ in billions) balance rates balance rates balance rates balance rates balance rates

Earning assetsFederal funds sold, securities purchased

under resale agreements and

other short-term investments $ 98.9 0.42 % $ 98.5 0.32 % $ 83.4 0.35 % $ 72.0 0.40 % $ 70.8 0.38 %Trading assets 37.9 3.67 38.0 3.71 37.4 3.81 33.9 3.56 29.0 3.77Securities available for sale:

Securities of U.S. Treasury and federal agencies 9.6 1.02 2.1 2.33 1.6 2.87 1.7 2.80 1.7 2.79

Securities of U.S. states and political subdivisions 25.8 4.93 22.6 5.35 19.6 5.45 18.4 5.58 17.2 5.89


Federal agencies 77.3 4.41 74.4 4.76 73.5 4.72 80.4 4.48 70.5 5.35

Residential and commercial 34.3 7.46 32.5 8.86 32.9 9.68 33.4 10.95 33.4 12.53

Total mortgage-backed securities 111.6 5.36 106.9 5.98 106.4 6.21 113.8 6.35 103.9 7.67

Other debt and equity securities 40.7 4.69 37.0 5.81 35.9 5.55 37.8 6.15 35.5 6.02

Total securities available for sale 187.7 4.92 168.6 5.81 163.5 5.94 171.7 6.18 158.3 7.05Mortgages held for sale 34.6 4.49 30.7 4.73 38.7 4.51 45.1 4.39 38.1 4.72Loans held for sale 1.0 5.21 1.4 5.05 1.0 4.88 1.1 5.15 3.2 2.71Loans:

Commercial:

Commercial and industrial 159.6 4.22 153.6 4.60 150.0 4.65 147.9 4.71 146.1 4.57

Real estate mortgage 102.4 3.93 101.5 4.16 99.9 3.92 99.2 3.85 99.0 4.15

Real estate construction 20.5 6.12 22.0 4.64 24.3 4.26 26.9 3.68 29.5 3.31

Lease financing 13.0 7.21 12.9 7.72 13.0 7.83 13.0 9.00 13.2 9.07

Foreign 38.2 2.42 36.4 2.65 33.6 2.83 31.0 3.57 30.3 3.15

Total commercial 333.7 4.16 326.4 4.37 320.8 4.33 318.0 4.42 318.1 4.37

Consumer:

Real estate 1-4 family first mortgage 223.8 4.83 224.9 4.97 229.6 5.01 228.8 5.06 231.2 5.16

Real estate 1-4 family junior lien mortgage 89.1 4.37 91.9 4.25 94.7 4.35 97.7 4.37 100.3 4.41

Credit card 21.5 12.96 21.0 12.97 21.5 13.18 21.9 13.44 22.0 13.57

Other revolving credit and installment 86.5 6.25 87.1 6.32 87.5 6.36 87.3 6.48 87.9 6.50

Total consumer 420.9 5.44 424.9 5.48 433.3 5.54 435.7 5.61 441.4 5.68

Total loans 754.6 4.87 751.3 5.00 754.1 5.03 753.7 5.11 759.5 5.13Other 4.8 4.18 5.0 4.10 5.2 3.90 5.3 3.93 6.0 3.53

Total earning assets $ 1,119.5 4.43 % $ 1,093.5 4.64 % $ 1,083.3 4.73 % $ 1,082.8 4.87 % $ 1,064.9 5.01 %

Funding sourcesDeposits:

Interest-bearing checking $ 44.0 0.07 % $ 53.3 0.09 % $ 58.5 0.10 % $ 60.9 0.09 % $ 59.7 0.10 %Market rate and other savings 473.4 0.17 455.1 0.20 443.6 0.22 431.2 0.25 420.0 0.25

Savings certificates 67.6 1.47 72.1 1.42 74.4 1.39 79.1 1.43 85.0 1.50

Other time deposits 12.8 2.02 13.0 2.03 13.8 2.24 13.4 2.00 14.4 2.33

Deposits in foreign offices 63.5 0.23 57.9 0.23 57.5 0.23 55.5 0.21 52.1 0.24

Total interest-bearing deposits 661.3 0.34 651.4 0.37 647.8 0.38 640.1 0.41 631.2 0.45Short-term borrowings 50.4 0.18 53.3 0.18 54.8 0.22 50.6 0.24 46.5 0.26Long-term debt 139.5 2.81 145.5 2.78 150.1 2.95 160.8 2.86 177.1 2.76Other liabilities 11.2 2.75 11.0 3.03 9.5 3.24 8.3 3.13 6.7 3.39

Total interest-bearing liabilities 862.4 0.76 861.2 0.80 862.2 0.85 859.8 0.89 861.5 0.94Portion of noninterest-bearing funding sources 257.1 - 232.3 - 221.1 - 223.0 - 203.4 -

Total funding sources $ 1,119.5 0.59 $ 1,093.5 0.63 $ 1,083.3 0.68 $ 1,082.8 0.71 $ 1,064.9 0.76

Net interest margin on ataxable-equivalent basis 3.84 % 4.01 % 4.05 % 4.16 % 4.25 %

Noninterest-earning assetsCash and due from banks $ 17.1 17.4 17.4 18.0 17.0Goodwill 25.0 24.8 24.8 24.8 24.8Other 119.7 115.2 115.7 111.4 113.7

Total noninterest-earnings assets $ 161.8 157.4 157.9 154.2 155.5Noninterest-bearing funding sourcesDeposits $ 221.2 199.3 193.1 197.9 184.8Other liabilities 57.5 53.2 55.3 52.9 50.1Total equity 140.2 137.2 130.6 126.4 124.0Noninterest-bearing funding sources

used to fund earning assets (257.1) (232.3) (221.1) (223.0) (203.4)

Net noninterest-bearing

funding sources $ 161.8 157.4 157.9 154.2 155.5

Total assets $ 1,281.3 1,250.9 1,241.2 1,237.0 1,220.4

(1)Our average prime rate was 3.25% for quarters ended September 30, June 30 and March 31, 2011, and December 31 and September 30, 2010. The average three-month London Interbank Offered Rate (LIBOR) was 0.30%, 0.26%, 0.31%, 0.29% and 0.39% for the same quarters, respectively.


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27

Wells Fargo & Company and SubsidiariesFIVE QUARTER LOANS


(in millions) 2011 2011 2011 2010 2010

Commercial:

Commercial and industrial $ 164,510 157,095 150,857 151,284 147,321

Real estate mortgage 104,363 101,458 101,084 99,435 98,755

Real estate construction 19,719 21,374 22,868 25,333 27,911Lease financing 12,852 12,907 12,937 13,094 12,993

Foreign (1) 38,390 37,855 35,476 32,912 29,691

Total commercial 339,834 330,689 323,222 322,058 316,671

Consumer:

Real estate 1-4 family first mortgage 223,758 222,874 226,509 230,235 228,081

Real estate 1-4 family junior lien mortgage 88,264 89,947 93,041 96,149 99,060

Credit card 21,650 21,191 20,996 22,260 21,890

Other revolving credit and installment 86,600 87,220 87,387 86,565 87,962

Total consumer 420,272 421,232 427,933 435,209 436,993

Total loans (net of unearned income) (2) $ 760,106 751,921 751,155 757,267 753,664

(1)Substantially all of our foreign loan portfolio is commercial loans. Loans are classified as foreign if the borrower's primary address is outside of the United States.(2) Includes $37.2 billion, $38.7 billion, $40.0 billion, $41.4 billion and $43.8 billion of purchased credit-impaired (PCI) loans at September 30, June 30 and March 31, 2011, and

December 31 and September 30, 2010, respectively. See table on page 29 for detail of PCI loans.

FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30

(in millions) 2011 2011 2011 2010 2010

Nonaccrual loans:

Commercial:

Commercial and industrial $ 2,128 2,393 2,653 3,213 4,103

Real estate mortgage 4,429 4,691 5,239 5,227 5,079

Real estate construction 1,915 2,043 2,239 2,676 3,198

Lease financing 71 79 95 108 138

Foreign 68 59 86 127 126

Total commercial 8,611 9,265 10,312 11,351 12,644

Consumer:

Real estate 1-4 family first mortgage 11,024 11,427 12,143 12,289 12,969

Real estate 1-4 family junior lien mortgage 2,035 2,098 2,235 2,302 2,380

Other revolving credit and installment 230 255 275 300 312

Total consumer 13,289 13,780 14,653 14,891 15,661

Total nonaccrual loans (1)(2)(3) 21,900 23,045 24,965 26,242 28,305

As a percentage of total loans 2.88 % 3.06 3.32 3.47 3.76

Foreclosed assets:

GNMA (4) $ 1,336 1,320 1,457 1,479 1,492

Non-GNMA 3,608 3,541 4,055 4,530 4,635

Total foreclosed assets 4,944 4,861 5,512 6,009 6,127Total nonperforming assets $ 26,844 27,906 30,477 32,251 34,432As a percentage of total loans 3.53 % 3.71 4.06 4.26 4.57

(1)Also includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.(2) Excludes loans acquired from Wachovia that are accounted for as PCI loans because they continue to earn interest income from accretable yield, independent of performance

in accordance with their contractual terms.

(3) Real estate 1-4 family mortgage loans insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) and student loansprimarily guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program are not placed on nonaccrual status sincethey are insured or guaranteed.

(4) Consistent with regulatory reporting requirements, foreclosed real estate securing Government National Mortgage Association (GNMA) loans is classified as nonperforming.Both principal and interest for GNMA loans secured by the foreclosed real estate are collectible because the GNMA loans are insured by the FHA or guaranteed by the VA.


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28

Wells Fargo & Company and SubsidiariesLOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING


(in millions) 2011 2011 2011 2010 2010

Total (excluding PCI)(1): $ 19,639 17,318 17,901 18,488 18,815

Less: FHA insured/guaranteed by the VA (2) 16,498 14,474 14,353 14,733 14,529

Less: Student loans guaranteed under the FFELP (3) 1,212 1,014 1,120 1,106 1,113

Total, not government insured/guaranteed $ 1,929 1,830 2,428 2,649 3,173

By segment and class, not government insured/guaranteed:

Commercial:

Commercial and industrial $ 108 110 338 308 222

Real estate mortgage 207 137 177 104 463

Real estate construction 57 86 156 193 332

Foreign 11 12 16 22 27

Total commercial 383 345 687 627 1,044

Consumer:

Real estate 1-4 family first mortgage (4) 819 728 858 941 1,016

Real estate 1-4 family junior lien mortgage (4) 255 286 325 366 361

Credit card 328 334 413 516 560

Other revolving credit and installment 144 137 145 199 192

Total consumer 1,546 1,485 1,741 2,022 2,129

Total, not government insured/guaranteed $ 1,929 1,830 2,428 2,649 3,173

(1)The carrying value of purchased credit-impaired (PCI) loans contractually 90 days or more past due was $8.9 billion, $9.8 billion, $10.8 billion, $11.6 billion and $13.0 billionat September 30, June 30 and March 31, 2011, and December 31 and September 30, 2010, respectively. These amounts are excluded from the above table as PCI loanaccretable yield interest recognition is independent from the underlying contractual loan delinquency status.

(2) Represents loans whose repayments are insured by the FHA or guaranteed by the VA.

(3) Represents loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education LoanProgram (FFELP).

(4) Includes mortgages held for sale 90 days or more past due and still accruing.


29/42

29

Wells Fargo & Company and SubsidiariesPURCHASED CREDIT-IMPAIRED (PCI) LOANS

Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not becollected are considered to be credit impaired. PCI loans represent loans acquired from Wachovia that were deemed to be credit impaired. Evidence ofcredit quality deterioration as of the purchase date may include statistics such as past due and nonaccrual status, recent borrower credit scores andrecent LTV percentages. PCI loans are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the lifeof the loan. Accordingly, the associated allowance for credit losses related to these loans is not carried over at the acquisition date.

Under the accounting guidance for PCI loans, the excess of cash flows expected to be collected over the estimated fair value is referred to as the

accretable yield and is recognized in interest income over the remaining life of the loan, or pool of loans, in situations where there is a reasonableexpectation about the timing and amount of cash flows expected to be collected. Accordingly, such loans are not classified as nonaccrual and they areconsidered to be accruing because their interest income relates to the accretable yield recognized under accounting for PCI loans and not to contractualinterest payments. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, consideringthe impact of prepayments, is referred to as the nonaccretable difference.

Subsequent to acquisition, we regularly evaluate our estimates of cash flows expected to be collected. These evaluations, performed quarterly, requirethe continued usage of key assumptions and estimates, similar to the initial estimate of fair value. If we have probable decreases in the expected cashflows (other than due to a decrease in rate indices), we charge the provision for credit losses, resulting in an increase to the allowance for loan losses. Ifwe have probable and significant increases in the expected cash f lows subsequent to establishing an additional allowance, we first reverse anypreviously established allowance and then increase interest income over the remaining life of the loan, or pool of loans.

As a result of PCI loan accounting, certain credit-related ratios cannot be used to compare a portfolio that includes PCI loans

wells fargo 3q earnings release - final

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